Joe Marconi

We all are aware how hard it is to find and hire top talent, and then retain that talent. One strategy to offer an amazing benefits package. Vacation time, tool reimbursement, paid training, and sick days are just a few. What other perks do you offer or would like to offer that could help to attract and retain top employees?

If you are a shop owner and not listening to Remarkable Results, you do not know what you are missing. The amount of knowledge is amazing, and the discussion are relevant to every shop owner on the planet.

Many of you know that I’m a former shop owner and now work with Elite Worldwide as a business development coach and trainer. However, this post is not about promoting Elite. It’s about promoting the value of coaching. When I opened my repair shop in 1980, I struggled for nearly 10 years. Looking back, the primary reason was that I didn’t understand my true role as the owner. I believed my place was in the bays or behind the service counter. In reality, my place was in the office, working on the business rather than in the business. Once I understood that distinction, everything changed. My business grew, my life improved, and I went on to enjoy decades of success. A big part of that transformation came from working with a business coach who held me accountable and kept me focused on the tasks that truly moved the business forward. No matter where you are in your business journey, I believe every shop owner can benefit from having a coach. A good coach helps you clarify your goals, develop strategies, stay focused, overcome obstacles, and ultimately create more freedom in both your business and your life. There are many excellent coaching companies in our industry. If you’re not currently working with one, take some time this week to explore your options. Speaking as an old-school shop owner who resisted asking for help for far too long, I can tell you that the right coach can make all the difference.

As a former shop owner, for 41 years, and now a business coach with Elite Worldwide, this question resonates with me. While I am not suggesting that shop owners should stive to become an absentee owner, it's crucial to build a company that runes with or without you. Create SOPs, hiring the best people and train them continuously. Create a workplace where people feel recognized and respescted. And of course, have a succession plan and an exit strategy, no matter how young your business is.

While car count is an important key performance indicator, don't focus on it alone. Instead, pay close attention to billed hours, ARO, and gross profit dollars. More cars do not always mean more profit. One of the best ways to increase revenue and profitability is through thorough multipoint inspections and a commitment to the Total Car Care Concept. Ensure your service advisors are trained to review each vehicle for missed maintenance services, overdue services, and upcoming maintenance needs. This not only increases opportunities but also helps customers protect their investment and avoid future breakdowns. Think about this: Would you rather service 40 vehicles at a $1,000 ARO or 60 vehicles at a $600 ARO? The answer may reveal where your true growth opportunities lie.

Let's compare two shops: • One shop generates $1 million in annual sales and earns a net profit of $200,000. • Another shop generates $2 million in annual sales but earns only $100,000 in net profit. Which shop is more successful? As you can see, higher sales do not always translate into higher profits. The number you should be watching closely is gross profit—the revenue remaining after paying the direct costs of labor, parts, and sublet expenses. Gross profit is what pays for your operating expenses, including rent, utilities, marketing, equipment, and payroll. Once those expenses are covered, the money left over becomes your net profit. This is why every shop owner must establish gross profit goals, particularly for labor and parts. Increasing gross profit dollars and gross profit percentages creates the foundation for stronger net profits and a healthier business. Remember: Sales are important, but gross profit and net profit are what ultimately determine financial success. View full article

The Technician Shortage Is Our Fault, And It's Time We Own It Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame? The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians? Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility. In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror? Have We Pushed Technicians Away? Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee. Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system? Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round, in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions? While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way? Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage? Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future. Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce. First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow. Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work. Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security. When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does. As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today. Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

To Reduce Comebacks, Build Quality into the Workflow Process After World War II, Japanese engineers toured American factories and were impressed by the speed and volume of production, especially in the U.S. auto industry. What they weren't impressed with was the high number of defects and the extensive rework required at the end of the production line. While the Japanese learned from the American production system, they refined the concept by adopting a better approach: building quality into the entire production process, not just inspecting it at the end. Auto repair shops can adopt this same philosophy. A final quality control inspection only identifies the defects created throughout the entire workflow. It reveals the errors, but it doesn't eliminate the root causes. I'm not suggesting you abandon end-of-line quality control. What I am saying is this: improving overall quality requires the mindset that quality begins at vehicle write-up and continues through every single step of the repair or service. In this article, I'll dive deeper into this strategy and show proven ways to reduce comebacks, improve morale, and increase profits. Quality Begins with Culture and Leadership Labor production is essential for every auto repair shop. All shop owners know this. But when too much emphasis is placed on speed alone, mistakes increase. Owners and managers must communicate the right message: speed without quality is a formula for failure. Comebacks drain profits, not only from redoing the work but also from lost opportunity revenue that could have been earned while fixing the comeback. Quality starts with the right culture and leadership, and it is ultimately a management responsibility. Shop owners must set the tone by promoting quality at every stage, on every job, every time. In an imperfect world where many things can go wrong, putting quality above quota is the foundation for reducing mistakes and increasing long-term profitability. Reward the Right Behavior and Remove Fear from the Workplace I've never known a technician who wasn't upset when handed a repair order stamped "Comeback." Even when the cause was a defective part, how the shop owner or manager handles the situation makes all the difference. First, ensure every technician is properly trained for the work they are expected to perform. Skills are learned, and ongoing training is essential for reducing mistakes. Equally important are step-by-step workflow processes and consistent in-house training so that every technician understands and follows the same procedures. Again, the emphasis should be on process quality. If too much reward is given to speed and not enough to accuracy, production will increase, but so will mistakes. Any short-term gains in workflow efficiency will eventually turn into long-term losses as comebacks erode profit and damage customer trust. When building pay plans, track production, efficiency, and comebacks. Incentives should reward both quality and productivity. This communicates clearly what matters most. Another critical factor is how shop owners react to mistakes. If employees fear punishment, they may hide errors, leading to much bigger problems. Understand that people are human, and things will go wrong: a misdiagnosis, a stripped drain plug, a damaged axle nut. Use these events as learning opportunities, not moments to punish. Now, if a technician repeatedly makes the same serious mistake or commits a safety-related error such as leaving lug nuts loose, that's a different issue and must be addressed immediately. Review, Discuss, Retrain, and Learn When a comeback occurs, conduct a complete review. Was it a part failure? A technician error? A communication breakdown? Once the cause is identified, create a corrective plan to prevent that situation from happening again. Tracking comeback data can guide better decisions. For example, several years ago, we noticed an increase in steering rack failures. Because we tracked every comeback, we identified the specific brand and supplier responsible. After discussing the issue with our supplier, we switched to a different brand, and that particular problem disappeared. If the cause is a technician error, review the job with the technician. Determine whether additional training is needed, whether better communication is needed, or whether the workflow process itself needs improvement. The goal isn't just to fix the immediate issues; it's to prevent future occurrences. Implement a "Stop the Line" Strategy The Japanese introduced a "stop the line" approach in the 1950s. If a factory worker noticed a door didn't fit properly, an engine leak, or a missing bolt, they had the authority to stop the entire production line and alert a team leader. The issue was addressed immediately. While this slowed production in the moment, the long-term quality gains far outweighed the temporary delay. And more importantly, many defects cannot be detected at the end of the line. Apply this philosophy to your shop: Give your technicians the authority to "stop the line." If a part doesn't fit right, a component looks questionable, or the part's quality isn't up to standard, technicians should be empowered to raise the concern immediately. This may slow production for that job, but it prevents comebacks, protects your reputation, and improves profitability in the long run. Give Technicians the Time They Need—Focus on Quality, Not Quota Some areas of our industry consistently suffer from inadequate labor times, especially diagnostics and testing. Technicians become very efficient at repetitive jobs, such as brake or suspension work, often beating the allotted labor time. This is good, it's how shops generate labor profit. But complex diagnostics, such as electrical issues, drivability problems, and complex check-engine-light faults, are rarely repeatable or predictable. Ask yourself: Are you giving enough time to these jobs? Can a technician realistically "beat the clock" on complex diagnostics? Usually not. You need to review the assigned labor times for complex diagnostic and testing jobs. Speak with your team. The labor time you charge must be fair to customers and to your technicians. If you want better diagnostic accuracy and fewer comebacks, you must focus on quality. That means providing proper training, tools, information, and, most importantly, adequate labor hours.

While I agree with your assessment. the EV momentum has been as expected. Recent reports indicate that there was a push with the early adopters, but the motoring public has not welcomed the EVs as once thought. One of main reasons is that there are so many people who prefer the Hybrid, which offers similar benefits to the EV, but with no stress and worry about recharging. Good conversation!

Welcome to the group and best of luck to you. There is a ton on information on this site. It would be worth your while to review the forums. Also, if there is a particular question, ask away!

Take if someone who has lived through many uncertain times, this is the best time to bump up your customer experience. Show confidence and and show that you appreciate your customers. This also means showing appreciation for your employees - Happy employees create happy customers. While there is a lot of uncertainty these days, there is one thing you can take to the bank: With the right positive mindset, staying strong and driving forward, you will be better off in the good times.

As I make this post, the stock market is down again, and the off again, on again tariffs are enough to drive me nuts. If imposed, will tariffs have an impact on our business and/or industry?

Some advice, if you don't mind. Four years goes by quickly, create a plan and make sure you plan for life after the sale. Get help from professionals. I spent 41 years in business, built to three locations. I was 60 when I started my plan to sell, in 2015, finally sold to the right buyer in 2021, at 66. Just giving a fellow auto repair shop owner advice. Good luck!

Where are you located? And why do think this is happening?

Great advice! While you top sales number may increase, that increase can get eaten up by increased expenses!

I have heard this from a number of shop owners, and it's the reason why many shop owners now use Uber and Lyft. Great info.

Do you ever have situation where your loaners cars are all out? Do you then set up alternative transportation? Shuttle customers, Uber, etc..?

You should not eat the cc fees. How you choose to charge is your choice. For me, I add all my cc fees into my cost of doing business, just like all other expenses. I then know my breakeven, and amortize the cost of all my jobs, just like all other expenses. For me, my opinion, I rather not show the cc added fee on the invoice, so my way, the cc fees are paid for, just spread out over all the invoices the same as all other expenses: Utilities, office supplies, etc. Hope this helps.

While I know that in some states, paying techs on flat rate is not legal, from what I am hearing, there are a number of auto repair shops in states that do allow flat, moving away from flat rate. What are your thoughts on flat rate pay?

Marketing Strategies to Attract and Retain Your Ideal Auto Repair Customers By Joe Marconi I had one main objective when I opened my repair shop in the fall of 1980: Acquire customers. Being a startup, gaining customers, any customers, was essential. Without them, business survival would not be possible. With limited knowledge of marketing, I did what many new companies do, I ran mass advertising promotions in local newspapers offering huge discounts. Did this type of marketing work? Well, that depends on how you define success. I can tell you that It did bring in customers, and a lot of them. But what I found out was that it didn’t bring in enough of the customers I wanted. Even early on in my business career, I wanted to create a company that catered to consumers who appreciated the total car care approach. With coupons in hand, most customers wanted only the discounted offer and nothing more. I remember one particular customer who came in for his discounted oil change that included a free tire rotation. I noticed that his wiper blades were ripped, broken, and digging into the windshield. When I offered to replace them, he shouted, “Don’t touch the wipers, just change the oil, rotate the tires, and let me be on my way!” I quickly learned that while my strategy did attract consumers, marketing to the masses was not going to be the way to grow my young auto repair shop. It’s not that I am against all forms of discounting. I am not. However, the better approach to growing an auto repair shop is to create a business strategy that attracts and retains those customers who are aligned with your business model and culture. In business, attempting to be everything to everyone is not a sustainable strategy. It is far better to narrow your focus, understand your key profile customers, and do all you can to gain more of them. In this article I will outline strategies to identify and market to your ideal customers, and why these strategies will help you achieve long-term success. Why Define Your Profile, Ideal Customer? As mentioned above, trying to be all things to all people is not a business model that works for the long term. If you are a startup company or need to increase car counts quickly, offering discounted services and repairs will fill your bays. And depending on the situation, this may be a viable option. However, in most cases, this should not be a long-term strategy. Kim and Brian Walker, at Shop Marketing Pros, recommend that auto repair shop identify their customer avatar, stating that “The most successful auto repair shop owners have a clear idea who they’re targeting.” Let me ask you a question. What type of customers do you want to work for? Wouldn’t you rather work for those customers who throw their keys on the service counter and say, “Don’t bother calling me, do what you need to do, and I’ll see you at 5 o’clock.” Well, those people are your ideal customers. They trust you, are loyal, and say YES to your service recommendations! Which also makes them your most profitable customers. And let’s not forget that dealing with these ideal customers is a lot less stressful for you and your entire team. Defining Your Profile Customer Defining your profile customer begins with understanding your business model and defining your vision, your mission, and your culture. What are the types of services and repairs you will offer, and the type of vehicles you prefer to work on? Also important is balancing the type of jobs offered to your clientele to ensure that you sell enough profitable work. While we may love what we do, we have a responsibility to be profitable. Knowing your profile customers will help ensure you achieve profitability. Creating the actual profile of your ideal customer will take a little bit more work. Start with what I call the “key droppers.” As mentioned earlier, those are the customers who don’t question your recommendations or your price, and they trust you. They literally drop their car keys on the counter, preapproving the work, basing their decision on earned trust. These customers will give you the foundation to build your customer profile. After that, run a report from your business system identifying your top 100 to 200 customers. Most systems sort this list by revenue per customer. In addition to the dollars spent per customer, what you are looking for is certain common criteria. Those criteria include length of time as a customer, visits per year, type of vehicles, where they live, and the type of repairs and services performed on their vehicles. You will find that your top-profile customers are the ones who follow your service and repair recommendations. Again, it’s the trust factor. For more extensive demographic customer profile building, marketing companies, like Shop Marketing Pros, have tools that can help with this process. After performing your due diligence with the initial list, you will end up with probably 50 to 100 customers that you will define as your key profile ideal customer. The next step is to build your marketing plan. Marketing Strategies to Gain More Profile Customers Once you have your customer profile, do all you can to cater to their needs. Listen to them, speak to them, and find out all about them. Their hobbies, birthdays, community involvement, the local newspapers they read, the local radio station they listen to, and their profession. Also, do they have children and pets? These things are important. Asking a customer about their child or pet, or remembering their birthday, goes a long way in building relationships, a key component in customer retention. But there’s another reason why this is important; and that is, to align your marketing and advertising strategy around your profile customers. Let me give you an example. Let’s say you find out that most of your profile customers are heavily involved in the community, such as fundraisers, or local youth sports activities. You then need to get involved with these local community events. Let your profile customers see that you are a business that cares about the community. Focusing your marketing efforts in areas where your profile customers will notice you will accomplish two things: it will reinforce your brand to your existing customers and will help you attract more of the same like-minded customers. A goldmine opportunity. The Rewards of Building an Auto Repair Shop Model Based on Your Ideal Customers It’s hard to deny the rewards of building a marketing strategy and business model around your profile customers. You’ll save on advertising costs by targeting your ad dollars, rather than using a shotgun approach, marketing to the masses. You will build a stronger and more loyal customer base, improve customer retention, increase sales, and generate higher profits. You will also build a powerful brand. The best part, you will lower the overall stress for your employees. Conclusion If you are an auto shop owner looking for innovative ways to enhance and grow your business, Elite Worldwide can help. At Elite, we have world-class, experienced coaches who understand your business. Our coaches have lived in the trenches and built amazing, successful companies. Elite also has sales and management training, and peer groups that can take you and your business right to the top. No matter where you are in your business career; startup, growth mode, or looking to retire, Elite can guide you and help you achieve your goals and build a more profitable and successful business. About the author – Joe Marconi – With over four decades of industry expertise, Joe is a seasoned professional whose accomplishments include owning and operating one of America’s most successful auto repair companies. A graduate of the Automotive Management Institute, Joe is a recipient of the CARQUEST Excellence Award, served on industry panels, and played a role in developing the ASE Engine Performance Certification test. As a former columnist for Ratchet & Wrench Magazine and co-founder of AutoShopOwner.com, Joe has been a keynote speaker at the Ratchet and Wrench Conference. After selling his automotive company in 2021, Joe now dedicates his time to giving back to the industry as a Top Shop 360 Business Development Coach with Elite Worldwide and serves on the board of directors for the Service Stations Dealers of Great New York. Joe, a Bronx native now residing in Patterson, New York, enjoys family time, community involvement, and pursuits such as tennis, golf, and woodworking. View full article

An extremely important topic! Required podcast for shop owners! As always, thank you Carm for bring important and relevant topics to the forefront!

From what I see, from shop owner friends and clients, 2025 is starting off as a better year than 2024. What are you seeing in your neck of the woods?

Over the weekend I met a 67 year old shop owner who has been in business for 41 years, and still involved in the day to day operations. He added that he has done nothing to plan for his future and his exit. Life can throw us a curve ball at any age, are your properly prepared. I know it sounds a little crazy, but the right time to get you business ready to sell, is when you first go into business. What are you doing to prepare for your exit, sale or if life throws you a curve ball?